XN000022-1995-07-05 — Page 10

- 9 -

Airport Railway Financial Support Agreement signed

The Financial Support Agreement (FSA) for the Airport Railway will provide the detailed assurance of Government's support required for the Mass Transit Railway Corporation (MTRC) to complete the project through commercial borrowings, the Secretary for the Treasury, Mr K C Kwong, said today (Wednesday).

Mr Kwong was speaking at a ceremony held this morning to mark the signing of the FSA for the Airport Railway. The FSA was signed by Mr Kwong and the Chairman of the MTRC, Mr Jack C K So.

"The Corporation has enjoyed tremendous success in the financial markets over the years and I have no doubt that with this Agreement it will secure financing for the project on very favourable terms.

"I wish to reconfirm Government's commitment to support the Corporation in all its endeavours to complete the Airport Railway in a timely and cost-effective manner by mid-1998," said Mr Kwong.

Mr So said with the FSA now firmly in place, the MTRC would immediately commence a major financing programme which would include a variety of funding instruments in Hong Kong as well as other financial markets.

"Based on the Corporation's past record and credit ratings, we have full confidence that the programme will be successfully completed on time to provide the necessary funding," he said.

Mr So said the MTRC was making excellent progress with the construction of the Airport Railway.

"All major civil engineering contracts and most of the electrical and mechanical contracts for the building of the 34-kilometre railway to the new airport as well as the new town in Tung Chung have been awarded. Construction is under way at all the sites.

"The new railway is currently programmed to open for passenger service by June 1998. However, the Corporation will continue to work towards an earlier opening of the railway as far as possible," said Mr So.

End/Wednesday, July 5, 1995

Page 10Page 11